Tether Supply On Exchanges Rises Amid Market Correction

It’s been a period of mixed feelings for crypto traders, as prices of assets continue to fluctuate. As usual, the most affected coin is Bitcoin, whose continuous rise and fall have become increasingly problematic. The flagship asset is struggling to break through the resistance level and keep up with the momentum as seen in September and October. 

The Fed news on December 15 about retaining interest rates seemed to have jacked up assets’ prices and supply, but it was only for a brief period. BTC and ETH hit $49k and $4k after the announcement, but presently, the two assets are trading below $48k and $4k. 

One type of crypto asset that seems to be going against all odds is the stablecoin Tether. Given the market liquidation and correction, it’s no surprise that the stablecoin supply is rising. Several traders have liquidated their positions and are buying more USDT. 

Tether Witnesses Massive Supply

According to Santiment, USDT supply on exchanges is at a six-month high. According to the on-chain data provider, Tether stablecoin increased to 22.5%, the highest recorded in six months. This supply equates to almost $9B, showing the level of buying on exchanges.

The increase in supply may have to do with the recent issuance. In the last month, Tether has issued over $4B worth of USDT, taking its market cap to more than $76B. 

The total supply of Tether in 2021 has increased massively. When you look at the yearly chart, USDT supply has galloped from $20B to $80B, which is four-fold. The supply has raised eyebrows and gotten the attention of regulators, with Tether accused of printing USDT from nowhere without backing them as they should. 

The law states that every stablecoin supply must be backed by assets equivalent to the supply, such as the USD. According to some findings, Tether has been using Bitcoin to back up its reserves whenever there’s circulation. 

Earlier this week, a new class-action lawsuit was filed against the stablecoin issuer in New York for various offenses. This wasn’t the first time this happened, as Tether is often accused of mismanaging funds and concealing information about their USDT reserves. 

However, the stablecoin issuer denied all the allegations, stating that their supply has been backed 100% by traditional currency and cash equivalents. Nevertheless, the issuer is still under the microscope. 

Tether Gets Adopted By Myanmar

This week, one of the trending news has been Myanmar adopting USDT as its currency. The country’s parallel government, the National Unity Government, announced the news this week, with Tether commending the government for the move.

Adopting Tether will help the government raise funds to overthrow the military government and release their imprisoned leader Aung San Su Kyi. The news shocked everyone, as the issuer has been involved in controversies.